Purchase orders - Incorrect VAT when using settlement discount

Purchase orders - Incorrect VAT when using settlement discount

If you create a purchase order for a supplier with settlement discount, then update the order to the ledgers before the order is delivered, the VAT amount is incorrect. This is because it is reduced by the settlement discount when it should show the full VAT amount. 

As a workaround you can mark the purchase order as delivered before you update it to the ledgers. Alternatively, when you update to the ledger, you can manually correct the VAT amount:

1. On the navigation bar click Purchase orders.
2. Click the required order, then click Update ledgers.
3. Click Edit, enter the quantity received, then enter the correct total tax amount.
4. Click Save, then repeat step 3 for any further item lines.
5. To update to the ledgers, click Update.
6. Check or amend the invoice details as required, then click Save.